…You may still end up getting a ‘NO’.  Some things never change. People continue to come to us after they get declined. It’s the same old story. Initially they are told ‘No Problem’ only to end up disappointed. Why does this happen so often? Because a ‘verbal’ bank approval is just that, verbal.  It has no ‘teeth’. Unfortunately no credit or employment/income check is done, initially. The customer then proceeds perhaps to purchase a home and put their home up for sale, or advise creditors they will be paid out, or make arrangements to do a major renovation etc. And often they have committed to other parties only to end up embarrassed that they cannot go ahead.

Folks, for almost 9 years now, we have chronicled a multitude of our new client’s experiences at their bank.  Our business has grown based on ‘Referrals’ from satisfied clients, many of whom have become friends. They know we care about them, and they learn that our ‘Word’ is our ‘Bond’.

When we tell you, that you are approved, we guarantee it. Our clients realize that we have many more lenders, mortgage products and solutions than the banks. So when they refer a son or daughter, a friend or neighbour, they tell them to come to us first.

We do not offer ‘Posted’ rates as the banks do, to give you a big discount, only to end up actually not giving you the lowest rate (to make more profit) that they hope you will be satisfied with. We offer you the best rate from the ‘Get Go’.

We also protect you in so many ways.  We make sure that we put you in a mortgage product that is both suitable for your needs and flexible as well, meaning you can get out of it if necessary with the smallest penalty possible. Did you know that the main reason the banks use ‘Posted’ rates? So they can charge you a maximum penalty based on the difference between ‘Posted’ and your discounted rate. Our ‘non-bank’ lenders only charge the difference between the discounted rate you received and the current discounted rate at the time of change, for the balance of term.

In addition, if you get a bank mortgage today, it is likely a ‘Collateral’ mortgage which as we have said before, leaves you with very limited options (to put it mildly) in future.

So ask yourself this question. Why would I go to the bank first before I come to you? When you do a mortgage through us, you lose no banking privileges. They are still happy to maintain your bank accounts, credit card accounts etc. When people ask us why they should try our services, we simply say ‘Why Wouldn’t You’ and of course we go on to give many examples. This is not arrogance. It is confidence, and it is the truth. There are many many more advantages and benefits if obtaining a mortgage from ‘The Price Team’.

For your next mortgage needs, please call us first. You’ll be so glad you did.

Just imagine if you could only get a mortgage through ‘THE BIG BANKS’ and they had no competition from the mortgage brokerage industry. An industry that looks out for your best interests.

The Banks could charge you whatever the heck they wanted to, wouldn’t they? Of course they would.

You know what? We keep the banks on their toes. But you know what else? They are winning the game.

Yup, they have 75 per cent of the mortgage market, and we have 25 per cent. We have done well, so far.

Except for one thing. The Canadian consumer still does not understand or realize the value of our services. And they/you have no clue what you are getting into when you get a bank mortgage any more.

The public at large continues  to be ‘The Great Unwashed’ a term used many decades ago to describe those who were ignorant, and believed in what their mothers and fathers before them told them to do.

Well times have changed, and if you think your bank is looking after your best interests, well think again

Some may see us as out spoken, but in reality we are passionate professionals who simply want to get the ‘Truth’ out.

There are many bank personelle who aretgreat people who do not realize that they are working for an intstitution…

…And you could only get a mortgage through ‘THE BIG BANKS’. Boy would things be different. Would the Banks charge you whatever the heck they wanted to? Absolutely they would!

You know what? We keep the banks on their toes. Without the mortgage brokerage industry, people would pay much much more than they do today, and many would not qualify for a mortgage at all. The banks have 75 per cent of the mortgage market, and we have 25 per cent. Most Canadians still do not understand the true value of our services, and have little idea what they are getting into when you get a bank mortgage any more.

The public at large continues to be ‘The Great Unwashed’ a term used many decades ago to describe those who were ignorant, and who believed in what their mothers and fathers before them did and still tell them to do. Most still blindly ‘flock’ to the bank first, and only when they have a problem, do they come to us. It’s a good thing there is another choice.

Don’t get us wrong, there are many bank personnel who are great people. But they are skillfully trained to do what’s best for the bank, and extract as much as they can from you, so if you think your bank is looking after your best interests, think again. A mortgage (usually the biggest investment of a lifetime)  is a lot more than about rate. Yes ‘rate’ is very important, but the terms of a mortgage, and the advice you receive are equally so.

You know what else? The big banks are winning the game. Anyone who takes a bank collateral mortgage is letting the bank have almost complete control over their finances, and will ‘absolutely’ end up paying more. Does it sound right to you that a mortgage is registered well above the price/value of your home, that your unsecured credit cards effectively become ‘secured’, and the bank can increase the rate at their discretion? That’s only the tip of the iceberg folks.

We look out for your best interests in an unbiased way, and we put you in mortgage products that are best for you. We educate, advise, strategize and find solutions every day that save Canadians thousands upon thousands of dollars, and we help you achieve financial well-being and financial security.

We are passionate professionals who care about you, and who simply want to get the truth out because you should be aware about what is really going on.

…Their new home. Like many others before them, Sam and Mel went to their bank to get pre-approved for a mortgage to buy a new house. The bank told them they were good to purchase for up to $350,000., quoted them a rate and they began their search for a new home.

They spent considerable time with their realtor looking at many homes over approximately two months and finally found one that matched their needs. Once the offer was accepted, they went back to their bank that, by the way, they had been customers with for over 15 years and knew the mortgage officer very well from a previous home purchase.  They submitted the offer of $349,000. and assumed they would receive a quick approval.

The bank did not respond for almost a week and they began to worry so they called to ask about the delay. To their horror, they were told that they had been declined for the mortgage. The reason stated was ‘Mel’s credit was unacceptable’. Apparently as a result of losing her job over two years ago, some of her credit card payments were missed and noted as R3’s, 60 days overdue.  The cards had been current for some time but the bank decided she was not credit worthy despite having a good mortgage repayment history with this bank. They were in shock and called their realtor with the bad news.

The realtor suggested they come to us. We got them approved within 24 hours and at a rate over one half per cent below the bank’s offer. They were fuming at the bank at the embarrassment caused them. Their realtor asked them initially if they had been pre-approved and they told her they had been.

You see folks, the banks actually do not do mortgage pre-approvals contrary to what most people think. What they do is a ‘prequalification’ which is simply a calculation based on income, and that’s it. There is no credit check.

Our pre-approvals are much more thorough and are based not just on ‘stated’ income but ‘proof’ of employment and income. We also review your credit history to make sure it is acceptable and act accordingly. We then proceed to book a mortgage through one of our over 40 lenders, assuring you of a mortgage and a guaranteed rate. When we give our pre-approval in writing, it is only conditional on one thing; the real estate being acceptable. You are fully protected, and there will be no nasty surprises.

When you buy your next home, make sure you call The Price Team/DLC for a mortgage pre-approval you can count on.

With the new maximum 25 year amortization,  and refinances now restricted to 80 per cent, mortgage financing has become both more difficult and expensive* with higher payments, and more income needed. The above applies to high ratio mortgages only. Note we still have 35 year amortizations for conventional mortgages. The silver lining is that although payments are now higher, the interest is not and you will be paying down your mortgage sooner, and building equity faster.

On the weekend we drove the entire Fergus/Elora market and it was ‘spooky’ how few For Sale signs we saw. Many streets had ‘no’ homes for sale at all, and it just felt weird. We checked out 3 listings, 2 MLS and 1 Property Guy private for sale and guess what? They were all sold, just waiting to firm up the financing. Inventory is way down. People have been spooked by all the negative press and have hunkered down. We just hope that if you are one of them,  you have taken yourself to financial safety.

Folks if you are buying, it has never been more important to make sure not only that you qualify but how much you qualify for. If you go to a bank, unfortunately because they only do a superficial check, the pre-approval may be of little value. If you come to us, you will receive a ‘GUARANTEED’ pre-approval you can ‘bank’ on …LOL…and we likely will not finance you with a bank because of the collateral mortgage products they have…look out.

We had a couple buying a home last week who planned to get the smallest mortgage they could by putting down the entire inheritance they received. He works in the auto industry and she was self employed. This spelled ‘Caution’ to us from an employment standpoint, so we suggested they take a comfortable mortgage and bank and invest the rest. We convinced them to keep reserve cash in the event of another down turn and potential job loss.

Have you planned ahead for a possible downturn or a drop in house prices? If not we suggest you do. Leveraging your mortgage to generate a financial ‘safety’ cushion at today’s rock bottom rates…(we now have a 3.89% ten year fixed rate mortgage…unbelievable)…offers potentially huge savings of tens of thousands of dollars over the next decade, and it will keep your payments low, low, low.

Call us today to make an appointment for a mortgage (financial) check up, and learn what options and strategies are available to you. We have many more than the banks do.

HOW TO SAVE $70,000 IN 5 YEARS

Ross and Marie bought a home 4 years ago with zero down and an interest rate of 5.79%. They have two young kids, a car loan and other debts of around $25,000. that they were having trouble paying down, and were paying mostly interest.

They approached us two years ago to see if we could help. Because the value of the house was not sufficient to enable a refinance and the penalty was considerable, they had to wait.

This time the value came in higher and the penalty was modest enabling us to get them a new 5 year fixed rate mortgage at 3.14% and to pay off all their consumer debts which alone were costing them $746 a month. Since the new mortgage payment was only $35/mth higher and they no longer had any debt payments, they will now save a net $42,660 over the next years. Not only that but they will pay less mortgage interest because of the great rate we got them. We also suggested that they consider taking a 25 year amortization which they could readily afford, saving them 11 more years in mortgage payments. The total savings is in excess of $70,000 over the next 5 years.

They were absolutely shocked at how much our new mortgage was going to save them and Ross said “You just saved me two years wages in the next 5 years, I can’t believe it.” Not only that but their  mortgage balance is going to be that much less too, at the end of the term.

Folks the above ‘success story’ is based on a small $125,000 mortgage. Just imagine the savings with a bigger mortgage. The average mortgage we do is over $225,000. If you are carrying ANY consumer debt, shed it now. Call us today for a mortgage checkup, and please please avoid getting into the new bank Collateral Mortgage product unless you are fully aware of all the pros and cons. We deal with over 40 lenders (including the banks) but we try not put anyone into one of these mortgages.  

Call us today for an appointment to learn more. We are open from 8 a.m. to 8 p.m. weekdays, and Saturday from 9 to 5 to serve you.

A local lawyer called us the other day and asked us to look at a private mortgage, a client had asked him to act for.  It seems that the lawyer who was acting for a homeowner  who was in the midst of a separation.  Joe was self employed and wrote his income down a lot and had gone to a mortgage broker in Guelph to help him refinance his house in order to pay out his ex.   The mortgage broker felt there was not enough strength with his income as a seasonal landscaper and asked for his mother to put her house up as further collateral on the deal.  We agreed to meet Joe and his mom and look at the proposed deal.  It was a 2^nd private mortgage at 14% with normal types of fees for this mortgage. 

We like the lawyer did not like the deal.  In essence, there was no reason to have the mother put her house up as collateral.  There was plenty of equity in Joe’s home and he had good credit.  We see the bank’s do this all the time…taking too much and we’re here to protect you. 
Well, the story has a happy ending.  We were able to find a prime lender for Joe which would take out his existing 1^st mortgage and get him a very affordable payment at an incredible 3.39%.   He can pay out his ex wife and he can easily afford the new payments.  And his mom doesn’t have to risk putting her home on the line. 

The moral of this story is this. Never use out of town brokers or private lenders you do not know. Use reputable, local ones. The lawyer who sent this deal to us, smelled a rat. He realized that the private lenders were ‘acquisition’ lenders, meaning they want to get the property by charging punitive rates and fees that ultimately dig a deeper hole for the borrower. Also there was no need to use the mother’s property as collateral. If they did, and any payments were missed, they would then charge fees upon fees and run up legal bills that cannot be paid, and they can then realize on the property.

Call us for your next mortgage need. We look out for your best interests, and we’ll help you get ahead.

When we were kids everyone bought with savings  and credit cards (CC) were still a thing of the future. What a difference a generation makes. Today everyone has a CC and buying on credit has become the norm. The easy availability of CC’s and Lines of Credit have proliferated the ‘Buy Now Pay Later’ scheme of things.

Most people have the best of intentions to pay off credit card (CC) balances every month. Unfortunately when this doesn’t happen before you know it you are only making minimum payments.  Your CC gets maxed out, you take your next credit card offer and the cycle into ‘easy bad debt’ spins out of control.

All of this is considered ‘bad debt’ because of the high interest rates attached to them. Most people (couples) obtain joint credit which actually is not a good thing. Establishing one’s own credit is better. Why? Because if anything happens to the relationship, credit ratings can go in the dumper really quickly. If one partner loses their job and they start borrowing on a CC to weather the storm, it can bring the other down. If you are self-employed, by all means keep your credit separate from your spouse if he or she is employed elsewhere.  Many people think that getting a ‘supplementary’ CC for a spouse helps their credit rating. It does not.  In short, there are many more advantages for avoiding ‘joint’ credit and if you cannot qualify on your own, then avoid obtaining a CC until you can qualify.

All decisions to obtain credit should be made as a couple, as should the use of credit. Making any significant purchases without the knowledge and consent of your partner can lead to trouble. Did you know that credit problems are a primary contributor to divorce and to bankruptcy? It is extremely important not only to manage credit responsibly but to also choose the best CC for your needs. Whether features such as a CC that offers free groceries (we think this one is a bad idea…sorry PC Financial), gas, travel, out of country car or medical insurance, are best for your needs, make sure you research and understand such things as interest rate and service charge policies, minimum payments, grace periods, credit card insurance, out of country fees etc. And read the fine print when you receive your new CC. If you don’t like what you read, put the CC in the freezer and forget about it.

Also know when your statement date is each month and make any significant purchases shortly ‘after’ the statement date…this way you can take advantage of ‘free’ no interest credit for up to 50 days.  If you find yourself making only minimum payments, look out. Whatever you do, never let the balance exceed 75% of limit. This shows good use of credit, and your credit score will not suffer. If you are a homeowner, and you are having credit troubles or you are simply concerned about your ‘trend’ , call us today for a free financial health check and some friendly, unbiased advice.

That’s right, if you are buying a home and you get your financing with us, we will pay for your home inspection.  Another good reason to choose The Price Team/DLC.  It’s best to start with a pre-approval, but as long you arrange your mortgage through us, this incentive will work for you. Also if you know someone who is going to purchase, please tell them to call us to get in on this great offer.

RATES ARE BACK TO ‘ALL TIME’ LOWS – It’s a great time to buy a new or resale home. Yes, fixed rates have come down again. Our best fixed rates (vs Banks) are 5 year 3.19% (vs 4.64%), 7 year 3.99% (vs 6.35%) and 10 year 3.99% Wow! (vs 6.75%). Our variable is at 2.85%. Based on our 5 year fixed rate the monthly payment on a $300,000 property with 5% down is only $1,228, $400,000 is $1,634, $500,000 is $2,046 or only $2,256/mth at 3.99% for 10 years. Wow and wow! With such low low rates comes the opportunity to pay down your mortgage that much faster. Let us show you how!

IF YOUR CURRENT MORTGAGE RATE IS ABOVE 4% – With less than a year left on your mortgage, now is a good time to look into locking in to a long term ‘All Time Low Rate Mortgage’. We will be pleased to show you all the options available to you from us versus more limited options at the bank. We will also help you understand all the negatives involved with the banks’ new collateral mortgage (CM) product. We do not recommend this product to any of our clients.

COLLATERAL MORTGAGES – Do you know that a CM makes your unsecured credit cards (with the same institution) ‘secured’? Do you know that the fine print allows the bank to increase your rate, much like they did to lines of credit during the credit crisis in 2008 and 2009 at their sole discretion? Do you know that if the bank chooses not to approve you in future or offers you an unacceptable rate, that you cannot obtain credit elsewhere because your CM mortgage is registered above the value of your house.

Call us today for an appointment at our ‘homey’ home office on Tower St. We’ll set you straight. It will be one of the ‘best’ phone calls you will ever make.

It was awesome to meet so many new and old acquaintances at last week’s Fergus Home Show.  Check out Tracy Luciani Facebook page; please send us your ‘likes’.

The draw was held Monday morning and the winner’s are: Joyce Sweeney of Elora for a Free Mortgage Payment, Rick Yuill of Elora  for the Classic Harley Davidson painting, and Debbie Denhoed for the Enriched Academy.Com  – Smart Start System for Financial Genius. Debbie has 3 kids…perfect! Congratulations to all of you.

We would like to suggest to all parents out there, that if you have teenagers, the Enriched Academy program is a wonderful, invaluable resource that they must have in their hands as soon as they reach age 13.  It encompasses more than saving, investing, budgeting, managing credit/debt to include Goal Setting, Building Character, Choosing Careers etc. Any youth or young adult who follows this program will become financially independent/wealthy. One of our DLC colleagues developed it for young people since our educational system does not teach them this stuff. It is a very worthwhile program and represents one of the greatest ‘gifts’ that you can give your child. Better yet, don’t give it to them, ‘encourage’ them to buy it with their first job earnings, or if you purchase it for them, have them pay you back right? That’s teaching them responsibility.  The 5 DVD series/package retails for $149.95 however for those of you who do your next mortgage or refer a new mortgage client to us (or a Home One Canada.Ca service bundle) will receive one free from us.

Congrats to Tracy for being honoured as the #1 Producer (3 years in a row now) with our franchise that includes over 70 mortgage consultants. Way to go Trace, you’re the best.  The Price Team/DLC  also placed in the top 12 with Dominion Lending Centres, Canada wide in 2011.